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The Ministry of Defence has failed to show how it will meet a
multi-billion-pound funding gap in the equipment budget even after two years
of cost cutting and reform, the
Government’s watchdog said today as it called for urgent answers.

The Public Accounts Committee also warned the Armed Forces against basing
future plans for buying ships, planes and trucks against an assumption of a
rise in their budget, an increase that the MPs called unrealistic given the
poor economic climate.

This would be a devastating blow to the military and result in the loss or
delay of even more capabilities,